Archive for November 2020

What is an EMI Calculator and How Does it Work?

Equated Monthly Installment is the amount payable every month to the financial institution until the loan amount is paid completely. Many people get confused when it comes to calculating EMI but not to worry anymore. With the help of an EMI Calculator, one can easily calculate the EMIs. All you need to know your- 
  • Loan amount. 
  • Interest rate. 
  • Loan tenure. 
With these three important variables, you can calculate EMIs at a single click. Moreover, many variables will play an essential role in calculating EMI. 
  • Your income. 
  • The company you work with. 
  • Credit history. 
  • EMIs of other loans.
Before going further, let’s understand the EMI calculator and how it works. 

What is EMI Calculator 

EMI calculator is easy to use. With the help of this calculator, you can calculate EMI for a home loan, auto loan, personal loan, and education loan effortlessly. By changing the values of the EMI calculator, you can re-calculate the EMIs until you get a satisfactory result. Many advanced EMI calculators display the results with a pie chart. 

Features of EMI Calculator:

  • Time-Saving
It is one of the significant benefits of using an EMI calculator. If you calculate your EMI on paper, it will surely eat your time. But, with an advanced functionality based EMI calculator, you can easily calculate the EMI within a few minutes.
  1. Accuracy 
Another significant feature of this calculator is accuracy. One can get accurate EMI in just a few minutes. Without this tool, there might be the possibility of facing a mistake in the calculation. Calculating EMI of a considerable loan amount is a difficult task for you. Just click on the EMI calculator and get to know your loan EMI. 
  1. Easy comparisons
EMI calculators enable you to compare the EMIs at one click easily. All you need to enter the values of the loans, interest, and tenure periods, and get the EMIs instantly. So, before you finalize any loan, it is advisable to take the help of an EMI calculator to compare the EMIs. 
  1. Endlessly Adjustable 
The best thing about an EMI calculator is that you can adjust it until you get a satisfactory result. You can fill the details in the calculator numbers of time. To get the result, you can also adjust its settings. 
  1. It helps you to plan EMI payments to ensure a good credit score. 
When you calculate the EMI before applying for a loan, that means you are preparing yourself in advance for the repayments. Thus, paying EMI on time leads to a good credit score.  
  1. It helps you to experiment with the figures to make an informed loan decision. 
EMI calculators can be customized as per the buyer needs. You can play with the figures, tailored the requirements to know the EMI amount that can be easily payable. 

Final Say:

Finance calculations deal with figures and formulas that are usually complex. An advanced features based EMI calculator makes complex EMI calculation into simple. Now, you don’t need to spend long hours in calculating EMI with pen and paper.